More On Legal & Compliancefrom The Advisor's Professional Library
- Preventing and Dealing with Client Complaints Although the SEC has not provided specific guidance on how client complaints should be handled, a firms policies and procedures should provide clear direction how to do so, as neglecting complaints can exacerbate a bad situation.
- Code of Ethics Rule The Code of Ethics Rule, found in Rule 204A-1, uses severe consequences for violation to help ensure investment advisors will do the right thing.
Why is the SEC recommending that the “fiduciary standard no less stringent than currently applied to investment advisers under [the] Advisers Act” be extended to brokers who provide advice? Knut Rostad, chairman of The Committee for the Fiduciary Standard and regulatory and compliance officer at the RIA Rembert Pendleton Jackson, sat down with AdvisorOne’s Kate McBride to discuss the SEC’s fiduciary recommendation and why fiduciary duty can’t be simply “disclosed away.” McBride is also a member of the Committee for the Fiduciary Standard.
The videotaped interview followed a Feb. 10 panel and Webcast discussing the SEC’s “Study on Investment Advisers and Broker-Dealers.” Hosted by the Center on Financial Services Law at New York Law School, and The Committee for the Fiduciary Standard, the New York event brought together fiduciary and securities law scholars and industry experts.
After a keynote speech in which Tom Bradley, president of TD Ameritrade Institutional,said that there is room for “pure sales and pure advice,” and that the broker-dealer exemption should be eliminated, panelists debated the impact of SEC’s recommendation to extend the fiduciary standard.
Joining Rostad on the panel were James Fanto, professor, Brooklyn Law School; Thomas Selman, EVP, Regulatory Policy, FINRA; Michael Koffler, partner, Sutherland Asbill & Brennan; Robert Colby, partner, Davis Polk & Wardwell and former SEC deputy director of Market Regulation. Tara Siegel Bernard, personal finance reporter at The New York Times, moderated the panel.
In separate videotaped interviews, Bradley and Fanto also talked with AdvisorOne’s McBride.
View the Panel Webcast
View the Bradley interview.
View the Fanto interview.